Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ann as such a stock due to the following factors:
- ANN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.9 million.
- ANN has traded 798,742 shares today.
- ANN traded in a range 207.4% of the normal price range with a price range of $1.69.
- ANN traded below its daily resistance level (quality: 8 days, meaning that the stock is crossing a resistance level set by the last 8 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on ANN:
ANN Inc., through its subsidiaries, engages in the retailing of women's apparel, shoes, and accessories under the Ann Taylor and LOFT brands. ANN has a PE ratio of 17.2. Currently there are 7 analysts that rate Ann a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Ann has been 985,100 shares per day over the past 30 days. Ann has a market cap of $1.7 billion and is part of the services sector and retail industry. The stock has a beta of 0.71 and a short float of 9.2% with 4.18 days to cover. Shares are up 6.7% year to date as of the close of trading on Thursday.
rates Ann as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, attractive valuation levels, increase in stock price during the past year and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- ANN INC has improved earnings per share by 20.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ANN INC increased its bottom line by earning $2.10 versus $1.63 in the prior year. This year, the market expects an improvement in earnings ($2.23 versus $2.10).
- ANN's revenue growth trails the industry average of 19.9%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Net operating cash flow has slightly increased to $104.83 million or 9.09% when compared to the same quarter last year. Despite an increase in cash flow, ANN INC's cash flow growth rate is still lower than the industry average growth rate of 30.51%.
- You can view the full Ann Ratings Report.